Step 1: Apply Kepler's Third Law of Planetary Motion.
Kepler's Third Law states that for any satellite orbiting a central body (like the Earth), the square of its orbital period ($T$) is directly proportional to the cube of the semi-major axis (which is the radius $R$ for a circular orbit).
Mathematically, this can be written as:
\[ T^2 \propto R^3 \]
Or, $T = C R^{3/2}$, where $C$ is a constant.
Step 2: Set up the ratio of periods for the two satellites.
Let $T_1$ be the period of the first satellite and $R_1$ its orbital radius.
Let $T_2$ be the period of the second satellite and $R_2$ its orbital radius.
From the problem statement:
$R_1 = R$
$R_2 = 1.01 R$
Using Kepler's Third Law for both satellites:
$T_1^2 = C R_1^3$
$T_2^2 = C R_2^3$
Now, take the ratio of the squares of the periods:
\[ \frac{T_2^2}{T_1^2} = \frac{C R_2^3}{C R_1^3} = \left(\frac{R_2}{R_1}\right)^3 \]
Substitute the given values for $R_1$ and $R_2$:
\[ \left(\frac{T_2}{T_1}\right)^2 = \left(\frac{1.01 R}{R}\right)^3 \]
\[ \left(\frac{T_2}{T_1}\right)^2 = (1.01)^3 \]
Step 3: Calculate the ratio of the periods.
Take the square root of both sides:
\[ \frac{T_2}{T_1} = (1.01)^{3/2} \]
Since $0.01 \ll 1$, we can use the binomial approximation $(1+x)^n \approx 1 + nx$ for small $x$. Here, $x=0.01$ and $n=3/2$.
\[ (1.01)^{3/2} = (1 + 0.01)^{3/2} \approx 1 + \left(\frac{3}{2}\right)(0.01) \]
\[ \frac{T_2}{T_1} \approx 1 + 1.5 \times 0.01 \]
\[ \frac{T_2}{T_1} \approx 1 + 0.015 \]
\[ \frac{T_2}{T_1} \approx 1.015 \]
Step 4: Calculate the percentage increase in the period.
The percentage increase is given by:
\[ \text{Percentage Increase} = \left(\frac{T_2 - T_1}{T_1}\right) \times 100% \]
\[ = \left(\frac{T_2}{T_1} - 1\right) \times 100% \]
Substitute the calculated ratio:
\[ = (1.015 - 1) \times 100% \]
\[ = 0.015 \times 100% \]
\[ = 1.5% \]
The final answer is $\boxed{1.5}$.